ZB Financial Holdings (ZBFH) has acquired a 30% stake in Cell Insurance Company, a short term insurance firm.
ZBFH group CEO, Elisha Mushayakarara said the acquisition was part of ZBFH’s diversification plan.
n=justify>”Whilst the group was already offering a diversified range of financial services, it did not have a direct investment in the short-term insurance business. The 30% acquisition, therefore, completes a well calculated diversification strategy,” Mushayakarara said.
He said Cell Insurance offers short-term insurance products that are complementary to the life products being offered by ZB Life Assurance and the reinsurance products from ZB Re-insurance. Mushayakarara said Cell Insurance offers innovative risk solutions that enable clients to retain part of their risk and benefit from investment income from their premiums.
“So if there are no losses recorded is a given insurance period, a client does not lose the money but is in a position to benefit from both the initial premium paid into Cell and the investment income,” said Mushayakarara, adding that in the present operating environment.
“Organisations need to continuously scan the environment for opportunities to grow their business. We have over the years been on the hunt for such a partnership, and took our time to carefully choose whom to invest with.”
He said the acquisition enabled ZBFH to consolidate its position in the financial services industry.